Trade between India and China through Nathu-la began today

Gangtok, May 21.TT: This year’s trade between India and China through Nathu-la began today, but Indian businessmen decided not to buy or sell anything from tomorrow to protest a 29 per cent customs duty on the new items allowed for import.

The trade couldn’t commence on the scheduled date of May 1 because of heavy snowfall. When the Indian traders reached the border pass today, they were surprised to know that additional items on the revised import list hadn’t been given exemption from customs duty.

“We were told that we had to pay a 29 per cent custom duty on every new item on the revised list. There was no such provision in the border trade earlier. We have decided not to carry on with the trade until and unless exemption is given by the central government,” said a trader, Lakpa Sherpa.

The directorate general of foreign trade under the Union ministry of commerce and industries had notified on May 7 that traders from Sikkim could now import readymade garments, shoes, quilt/blankets, carpets and herbal medicines from the Tibet Autonomous Region (TAR). Before the notification, the import list was limited to 15 items like wool, yak tails, sheepskin, horses and salt.

The new items of export are processed food, flowers, fruits, spices, religious products (such as beads, prayer wheels, incense sticks and butter oil lamps), readymade garments, handicraft and handloom products and herbal medicine.

Although the Sikkim traders didn’t import any item on the first day of this season, their Tibetan counterparts reached Sherathang in 22 vehicles and bought copper items, vegetable oil and canned food.

With the Sikkim merchants deciding to boycott the trade, no transaction is expected to take place from tomorrow. “The items on the old list for import are obsolete. Although we can sell items, we won’t take part in the trade from tomorrow,” said Lakpa.

A customs official said no exemption could be given to the traders until and unless the Centre issued a notification. “We haven’t received any notification from the Central Board of Excise and Customs, asking us not to slap duty on imported items. So, the traders have to pay the 29 per cent custom duty,” he said.

The official added that the custom duty charged would be refunded if a waiver was announced and the claim was made within six months of the notice being issued.